Market Perspectives ǀ Monetary balancing acts
In this latest issue of our monthly ‘Market Perspectives’, the experts of our Macro & Market Research Team focus among other topics on:
- Markets have already priced a lot of growth optimism, but the ‘grand reopening’ is unlikely to disappoint, with vaccinations now proceeding swiftly in Europe.
- Central banks face a balancing act in preparing markets for an unwinding of emergency measures. We expect this to happen in a controlled fashion over the summer, though we acknowledge the risk of communication accidents amid overheating concerns in the US.
- We keep a moderate pro-risk tilt favouring Equities and Credit over longer-dated Govies. Inflation swaps remain attractive amid mounting overheating worries in the US. Avoid unhedged USD exposure.